'TRAI recommendations convey impressions of crony capitalism' | business | Hindustan Times
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'TRAI recommendations convey impressions of crony capitalism'

business Updated: May 13, 2010 21:49 IST

Telecom operator Idea Cellular today criticised the recommendations of TRAI on 2G spectrum pricing and allocation, saying it bore "impressions of crony capitalism".

"For too long, the telecom sector policy has variously displayed characteristics of quota raj, licence permit raj and an SSI mindset, conveying unfortunately impressions of crony capitalism," Idea Cellular said in a statement.

TRAI, on Tuesday, suggested that operators should pay an additional one-time fee for holding spectrum beyond 6.2 Mhz.

If implemented, this will be a big blow to GSM players like Idea Cellular, Bharti Airtel and Vodafone Essar that have well over 6.2 Mhz of spectrum and will have to cough up more to retain the additional radio waves.

Idea Cellular said that the TRAI recommendations do not advance the objectives of achieving spectrum efficiency or moving towards a market-based pricing mechanism.

"The sector and the nation deserve a new deal. We expect the government to seize the moment," Idea Cellular said.